When Israel based startup NeoLogic began developing energy efficient CPUs for AI servers, many in the semiconductor industry dismissed the idea. “Most of the people that we have met say it’s impossible,” said co founder and CEO Avi Messica. “Some of them told us, at the time, that the innovation is impossible because you cannot innovate in logic synthesis. You can’t innovate in circuit design. It’s too mature.”
Despite the doubts, NeoLogic set out to prove otherwise. The fabless semiconductor company is building a server CPU that relies on simplified logic, reducing the number of transistors and logic gates. This approach allows the chips to run faster while consuming less power.
Founded in 2021 by Messica and CTO Ziv Leshem, NeoLogic’s leadership team brings a combined 50 years of semiconductor expertise. Leshem previously worked in chip design at major technology firms, while Messica specialised in circuit design and manufacturing. The pair launched NeoLogic with the belief that there was still room for innovation despite the decline of Moore’s law, which predicted the doubling of transistors every two years.
The startup is collaborating with two unnamed hyperscaler partners on the CPU design. A single core test chip is expected by the end of the year, with commercial deployment in data centers targeted for 2027.
NeoLogic recently secured a 10 million dollar Series A investment led by KOMPAS VC with participation from M Ventures, Maniv Mobility, and lool Ventures. The funding will be used to grow the engineering team and advance CPU development.
The timing is critical, as the AI boom is driving unprecedented demand for computing power. Data center energy consumption is projected to double within four years, straining existing infrastructure.
Messica believes NeoLogic’s technology could cut energy use significantly, making it too compelling for the market to ignore. “If you talk about next generation data centers, it affects the construction costs; it affects the amount of capital that you’ll invest because you can shave off roughly 30% of the cost. And it affects the water usage. It has an impact on society, and basically that was our vision roughly five years ago,” he said.
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